The price of staying awake

Drinking coffee is a daily morning ritual that many look forward to. However, did you know that getting your daily latte in a coffee shop might be costing you over a month worth of rent?

We all have different morning routines. Some of us are early risers, while others are habitual alarm snoozers. One common thread among many, though, is the love for coffee.

Caffeine, a legal stimulant, has become so entrenched in people’s daily routines that some can’t imagine starting their day without that morning jolt. Two out of every three American adults drink coffee daily, averaging over three cups each day. This adds up to nearly 150 billion cups of coffee consumed in the United States annually. Still, on a global scale, the USA ranks 25th in coffee consumption per capita, drinking only a third of what Finland consumes. Given such staggering consumption, one might jest that the Finnish population is exceptionally alert.

Largest coffee consuming nations

Source: International Coffee Organization

Around 20% of coffee enthusiasts, primarily from the younger generation, buy their coffee rather than brewing it at home. There’s an undeniable allure in grabbing a cup from the local café—the seductive aroma, the enticing treats behind the counter, and the occasional misspelled name on the paper cup—but it’s easy to overlook the cumulative cost. Spending $3.00 to $6.00 daily might seem inconsequential, but over a year, it adds up. For example, buying one medium-sized latte daily from Starbucks can total over $1,500 annually. This equates to nearly 4% of the average American’s yearly net salary or a month’s rent in a city like Austin, Texas. By opting to brew your coffee at home, you might enjoy higher-quality beans and spend only around $400 annually, even after factoring in the cost of a coffee machine and frother.

Cumulative cost of drinking a daily latte Buying a daily Grande Latte from Starbucks will cost you nearly $1,500, which is 4 times as much as making your coffee at home

Based on the price of a 'Grande' latte compared to a coffee made at home with premium beans in a Lavazza entry level espresso machine and Nespresso frother, depreciated and with annual payment plan split both over 2 years. Source: Starbucks USA pricing; Lavazza & Nespresso coffee appliances prices, Coffee Planet 1kg French Roast Arabica coffee beans pricing

Some might argue, “Are you suggesting we abandon our coffee outings and become reclusive?” Not at all. I’m not proposing we give up life’s pleasures. There’s a unique charm in occasionally enjoying a cup at a café, especially with friends. However, I do advocate for trying your hand at home-brewing, and here are two compelling reasons:

1. The potential savings are significant. Imagine being able to afford a new iPhone each year with the money saved.

2. You’ll be introduced to the captivating world of coffee, exploring various beans, roasts, and brewing techniques.

If the past two years of intermittent quarantines didn’t already propel you to try home brewing, starting now could be a delightful surprise. A good entry point would be investing in an espresso machine, a frother (essential for creamy lattes and cappuccinos), and a single-origin roast. With these tools, you’re set to explore the vast and fascinating world of coffee.

Illustration of espresso based coffee types

Embarking on this coffee journey, you’ll naturally develop a deeper understanding and appreciation for this beloved beverage. Questions you might never have considered will arise: “Which coffee blend resonates most with my palate?” “How crucial is the grind size?” or “How does cow’s milk froth compare to non-dairy alternatives?” Don’t hesitate to experiment—sample diverse coffee blends, occasionally treat yourself to different coffee styles like a Cortado (a personal favorite of mine), and explore the rich world of coffee origins.

As this becomes part of your routine, you’ll eagerly anticipate that morning brew—not just for the caffeine kick but as a testament to your evolving barista skills. Perfecting your coffee game may take practice, but there’s no time like the present to begin!

---

Source for this article: National Coffee Association (2020), Coffee Market Report from Coffee Statistics (2021), Independent cost estimates